The blog site for PPM practitioners and stakeholders across the enterprise

Wednesday Oct 30, 2013

By Paul Bender,
Director of Public Administration Strategy, Oracle Primavera

It goes without saying that communication between project team
members is a core competency that connects every member of a project team to a
common set of strategies, goals and actions. If these components are not
effectively shared by project leads and understood by stakeholders, project
outcomes can be jeopardized and budgets may incur unnecessary risk.

As reported by PMI’s 2013 Pulse of the Profession,an
organization’s ability to meet project timelines, budgets and especially goals
significantly impacts its ability to survive—and even thrive. The Pulse study
revealed that the most crucial success factor in project management is effective
communication to all stakeholders—a critical core competency for public
agencies. PMI’s 2013 Pulse of the Profession report revealed that US$135
million is at risk for every US$1 billion spent on a project. Further research on the importance of
effective project team communication uncovers that a startling 56 percent
(US$75 million of that US$135 million) is at risk due to ineffective
communication. Simply stated: public agencies cannot execute strategic
initiatives unless they can effectively communicate their strategic alignment
and business benefits.

Executives and project managers around the world agree that poor
communication between project team members contributes to project failure. A Forbes Insights 2010 Strategic Initiatives Study
“Adapting Corporate Strategy to the Changing Economy,” found that nine out of
ten CEOs believe that communication is critical to the success of their
strategic initiatives, and nearly half of respondents cite communication as an
integral and active component of their strategic planning and execution
process. Project managers see it similarly from their side as well. According
to PMI’s Pulse research, 55 percent of project managers agree that
effective communication to all stakeholders is the most critical success
factor in project management.

As we all know, not all projects succeed. On average, two in five
projects do not meet their original goals and business intent, and one-half of
those unsuccessful projects are related to ineffective communication. Results
reveal that while all aspects of project communication can be challenging to public
agencies, the biggest problem areas are:

A gap in understanding the business benefits.

Challenges surrounding the language used to deliver
project-related information, which is often unclear and peppered with project
management jargon.

Public agencies -- federal, state, and local -- have difficulty
communicating with the appropriate levels with clarity and detail. This
difficulty is likely exacerbated by the divide between each key audience and
its understanding of project-specific, technical language. For those involved in public sector project
and portfolio management, I would be interested to hear your thoughts and
please visit Primavera EPPM solutions for public sector.

Monday Sep 09, 2013

For years, government agencies have
undertaken ambitious, multi-year projects often without a step-by-step project
plan or documented ROI. This inevitably led to waste, a frustrated Congress,
and a confused public. Now, government agencies must show their programs
will achieve value from the very first stage of development.

By shelving expensive, multi-year
IT programs for smaller projects that can show incremental value, agencies can
prove to Congress real ROI. This makes it more likely that the agencies will
receive continued funding and the projects can continue. Another benefit is that
by breaking large projects into smaller ones, agencies can ensure that each
phase works properly and will deliver the expected ROI before advancing to the
next phase. If progress is not delivered, that project can be canceled or put
on hold, without much lost. As Tom Davis, Director of Federal Government
Affairs for Deloitte & Touche LLP notes, "significant amounts of
government funding have gone to waste due to agencies trying to tackle too much
at once." While this thinking is not necessarily new, the current fiscal
environment has convinced many that "agile" is the right approach to
successful programs.

"Flat is the new up"
may not be an ideal situation, but it is the one government agencies have come
to know. To adjust, they will need to become more innovative in the way they
extract efficiencies and cost savings out of their operations. Moreover, they
will need to prove, every step of the way, that their programs are valuable. In
a time of constrained budgets, failing to do so may result in reduced funding.

Oracle's Primavera
provides enterprise investment management technology that allows government
agencies to propose, plan, and control investments that present the greatest
value to both the agencies and the public they serve. With Primavera enterprise
project portfolio management solutions, national and local governments can
effectively manage time, costs, resources, contracts, and changes to all types
of projects or programs—including management of IT investments, grants,
military systems, capital facility projects, maintenance and improvement
programs, and more. Learn more here.

Thursday Aug 22, 2013

How many times have we heard the phrase, "government agencies need to do more with less?" Although over-used, it remains true, especially in today's environment. Facing a bleak future of flat or reduced funding, agencies need to find new ways to increase efficiencies and reduce costs from their current budgets. To do this, agencies will need to get creative in their thinking and be comfortable making the tough decisions of which projects to cut and which to save.
An example of an agency already doing this is NASA. Riding the ups and downs of the fiscal uncertainty rollercoaster and experiencing multiple cuts to popular programs, NASA is still "trying to ensure that the agency can maintain the health of its mission, which includes developing multi-generational rocket programmes." Internally, this requires new thinking, collaboration, and most importantly, innovation from all levels of the agency. NASA has implemented traditional cost saving measures including standardizing spending on travel and reducing the number of conferences employees can attend. In addition, the review process of projects has drastically changed and they no longer say, "yes" to projects they can't realistically pay for. Priorities are reviewed every budget cycle, officials go through a review process to see what programs can be trimmed, and programs are reviewed at key points in their cycle to ensure they are on target and will deliver a positive ROI. Although many of these changes sound small, they can add up to big cost savings in the end.

Demonstrating value is essential to keeping
your budget. As the report suggests, the days of Congress approving large,
multi-year programs on the promise of ROI are long gone. According to Chris
Mihm, Managing Director for Strategic Issues, GAO, "agencies will have to
be more able and willing to identify the savings and productivity improvements
they produce with a specific investment." To do this, he urges agencies to
not over-promise potential savings or exaggerate improvements seen from a
project. By reporting on the real data, documenting actual
productivity, and presenting the performance improvements that tell “the
proper story,” agencies will be able to show tangible improvements to Congress,
and most likely maintain their current level of funding.

Demonstrating value may not be as easy it
sounds. As Jon Desenberg, Senior Policy Director for The Performance Institute
notes, "demonstrating return on investment requires more than sending reaps
of spreadsheets and numbers to Congress." Much like an employee would
approach his boss for a promotion, agencies will need to prove value in
numbers, show improvement over time, and articulate their ROI clearly and
accurately. It may take more preparation than in years past, but it will be
worth it in the end.

Tuesday Aug 06, 2013

From the fiscal cliff to the current
sequester, government agencies are operating in a period of fiscal
uncertainly. At best agencies will have flat year-on-year budgets,
barely keeping up with the rate of inflation. At worst agencies will face deep
budget cuts. While many agencies are already reducing waste, cutting back
on training, and increasing efficiencies, this new environment
of constrained budgets and stricter congressional oversight will
require agencies to provide real proof of
ROI.

Sunday Jan 22, 2012

According to the Pew Research Center, two-thirds of Americans believe that the government cannot run program efficiently and without waste.

The Economist Intelligence Unit issued a report sponsored by Oracle titled "Creating value in the public sector: Intelligent project selection in the federal government". The report explores how some agencies are taking a portfolio-based approach to improve program performance.

Programs can be run more efficiently when agency leaders and managers improve their program management practices. A solid portfolio management solution enables them to:

have a holistic view of all the projects to see if and where new projects will fit.

identify the right projects.

balance the project portfolios

select and manage resources

constantly adjust programs to account for changes in strategy and demands.

Sunday Jan 15, 2012

Chicago Public Schools significantly improved project management processes, project tracking, and the oversight of a US$600 million capital improvement program with the help of Oracle's Primavera P6 Enterprise Project Portfolio Management and related Oracle applications